39 Monitoring

Question 1

Why Monitor the experience

Reasons for Monitoring [3]

Answer 1

• update methods & assumptions
  
  • to reflect future experience
    more closly
• Monitor any Trends
  (adverse ones)
  
  • to take corrective action
• Provide information to:
  
  • managers & key stakeholders

Question 2

Data Required for Monitoring [3]

Answer 2

• reasonable Volume so:
  
  • stable & consistent
• Divide into Sufficient
  Homogeneous groups to
  relevant Risks
  
  • but not groups with to little
    data
• Fit for Purpose

Question 3

What is the Use of the Monitoring Result [3]

Answer 3

* consider if experience will 
    reflect future 
* allowing for:
     - trends
     - cycles 
     - abnormal events 
     - random fluctuation 
* Adjust findings with data &
   modeling risks & adapt
   assumptions

Question 4

The Monitoring process/

Analysis of Monitoring [3]

Answer 4

* Divide data into suitable homo
   groups by risk, considering:
     - volume data in each cell
     - risk factors for investigation 
     - changes that have occurred 
        reducing relevance od data
* Identify Past:
     - trends
     - cycles 
     - anomalies 
     - random variation 
* Use Results to revise Models &
   Assumptions used, considering:
     - Purpose, need of Accuracy
        margin & Prudence 
     - allowing for future trends 
     - likely differences in future 
        than from past